GHG Emissions - March 30, 2022
BASF Updates Targets, Begins Reduction of Product Emissions
BASF has reaffirmed its climate targets one year after the initial announcement of its plans to reduce GHG emissions by 25% by 2030 compared with 2018. The chemical company is also maintaining its goal of net zero emissions globally by 2050.
In 2021, BASF reduced CO2 emissions by 3% compared with 2020 despite significantly higher production volumes due to the increased use of renewable energy and will be the main driver of emission reduction until 2025. By 2030, the company projects that 100% of its 2021 global power demand will be obtained from renewable sources.
BASF is investing in its own renewable power assets and purchasing green power from third parties. In 2021, BASF purchased a stake in Vattenfall’s wind farm Hollandse Kust Zuid (HKZ), which will generate 1.5 GW and will be operational in 2023.
The company signed 25-year PPAs with ENGIE and Ørsted for the supply of significant amounts of renewable electricity from wind and solar power in Europe. In the U.S., BASF has concluded long-term supply contracts for wind and solar power for its Freeport and Pasadena sites. In China, BASF has signed agreements with suppliers for the purchase of renewable power for its new Verbund site in Zhanjiang.
“Across BASF, we are working intensively to implement a large number of projects to further reduce our CO2 emissions significantly and achieve our ambitious climate targets,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, in a statement. “By cooperating with suppliers of raw materials we are also taking steps to reduce our product-related emissions. In this way, we are driving forward our transformation and supporting customers in their efforts to reduce emissions in their product portfolios.”
BASF is ready to offer its first net-zero and low-PCF products.
“By using green power, low-carbon steam, bio-based feedstocks, and highly efficient processes BASF is able to offer its customers net-zero products and products with a low product carbon footprint (PCF),” he said. “The company expects that demand for such products will exceed supply in the medium term and that their market value will more than compensate for the higher production costs.”
The company developed an in-house digital solution to calculate the PCFs for approximately 45,000 sales products and uses industrial averages and values from commercial databases as the basis to include upstream Scope 3 emissions. In order to create more transparency on Scope 3 emissions, BASF is intensively working with suppliers to improve the data for the raw materials it purchases from them.
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